On Friday, the City of
Huntsville received a copy of the Alabama Policy Institute's 60-page report "Follow
the Money: Comparing the Governments of Alabama's Four Largest Cities."
While Huntsville fared well in the report, we find its comparative methodology
flawed at best.

The report appears to be
based upon the premise that the community that spends the least amount of money
is the best-run community. Taking that philosophy to the extreme means
the community that spends the least on public safety, regardless of high crime
rates, is a better community. Likewise, the community that spends the least on
traffic, roads and planning, ignoring chronic traffic jams, is a better
community; the community that spends the least on industrial recruitment
despite high unemployment is the better community; the community that spends
the least on education and quality of life amenities such as libraries,
greenways and parks is a better community. Instead of doing more with less, it
seems to offer high marks to doing less with less.

API defines the study's
purpose as examining the "fiscal health of the state's four largest cities." A
fiscal health study usually assesses the nature of the community, its
economic/employment base, education profile/system, growth policy, financial
trends, and city operational, risk and debt management policies. This study,
however, picks cities with similar populations and compares some revenues and
expenditures on a per capita basis. That is not a fiscal health exam.

The report states that
Huntsville's per capita tax revenues have risen 50 percent in the past 10
years, inferring that the city has substantially increased taxes. The sales tax
rate was 8 percent 10 years ago, and it is 8 percent today. Property
taxes were 58 mills in 2000, and they are 58 mills today. Our taxable spending
has grown during this period as we have improved roads, improved education,
built parks and greenways, added recreational facilities and built new schools.
All this is because our community is growing.

Since 2000, we have
fortunately seen the creation of new jobs, companies, retail and shopping
experiences. As a result, thousands of new residents have moved into Huntsville,
adding to our economy and to the city's tax base. Whether revenues are derived
through sales tax, property tax or business licenses, the growth in these
revenues indicates a growing economy.

The study attempts to compare
municipal services among 10 cities across the Southern United States. For example, in
comparing public works departments, it does not consistently take into account
the various services or functions included within the departments or the
geographic size of the coverage area. You can't compare apples to apples if you
are using apples and oranges.

Huntsville is proud of its
fiscal management. For the fifth year in a row, we were awarded triple A credit
ratings by both Standard and Poor's and Moody's Investment Services rating
agencies. Few municipalities in the U.S. have this distinction. A strong
municipality welcomes government watchdog reporting and accountability. We work
for the taxpayer, and citizens deserve to know how their cities measure up. But
the methodology used by the Alabama Policy Institute in this report does not
serve anyone well.